Loan Servicer: 7th Circuit Wrong To Prioritize Individuals In Ponzi Liquidation

( January 8, 2026, 8:57 AM EST) -- CHICAGO — A loan servicer asked a panel of the Seventh Circuit U.S. Court of Appeals to reconsider its decision to affirm an Illinois federal judge’s decision to award priority to individual investors to receive proceeds from the liquidation of assets related to a Ponzi scheme, arguing that the panel’s decision expanded Illinois’ doctrine of equitable mortgages beyond existing precedent....

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